The Political Economy of Argentina, 1946–83 by Guido di Tella, Rudiger Dornbusch (eds.)

By Guido di Tella, Rudiger Dornbusch (eds.)

Twelve foreign economists study each govt due to the fact that Peron's first presidency, together with the newest army administrations. The years 1958-74 are tested in a brand new gentle and the postscript refers to President Alfonsin's altering fiscal approach in his first years of government.

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A stalemate is only broken when someone has more power: more power in the market or more political power. But in Argentina power in the market disappeared during the 1940s, and political power was oriented towards creating the stalemate; so a recurrent government illegitimacy emerged. The problem in Argentina was that Peronism blocked the development of capitalism. This was no mere accident. The maladjustment between the economy and the Peronist 'new society' was not accidental, but an obvious consequence of its policies.

If sterling earned through current account transactions became convertible, exporting to Britain became enormously attractive, because in this way the old triangular trade relation with the UK and the USA would be re-established. Once more the surplus with Britain would finance the deficit with the USA. If not, exporting to Britain made sense only if Britain recovered and managed to send goods to Argentina. In the early postwar period, and especially in the latter half of 1946 and in 1947, this seemed doubtful to many.

For diverse reasons which are not touched on here, the efforts to set up a legitimate democracy based on political parties and universal suffrage which began during the second decade of the present century became blocked in 1930 and since then its development has been crippled. The first Peronist administration based its legitimacy on an exclusive pact between the trade unions and the armed forces, but its most important axis was the arbitrating figure of Peron as a symbol of the new state. Political parties were excluded (including the ruling party Political and Economic Crises in Argentina 19 which was merely an electoral machine), as were the business organisations which were made to depend directly on the decisions made at state level.

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